Question

State with reasons whether following statements are True or False:
Depreciation is an amortised expenditure.

Answer 1

This statement is false. Depreciation is used for tangible assets and amortization is used for intangible assets. Amortization is a method of spreading the cost of an intangible assets over a specific period of time, which is usually its useful life.
Depreciation is a method of spreading the cost of a tangible assets over a specific period of time which is usually its useful life.